MMI's patents aren't worth the bath of buying the entire company. Brin and Page are going to cut'em a check and walk away....fast.
I do not think the deal will fall through either.BUT the street is putting a high "wait" premium on it.Let's say that it closes 6 months from now. If you bought at the close, that's a 9.65% rate of return, less transaction costs and taxes.BUT your possible loss is say 48% (assuming it will drop to 20 if the deal is blown).If it's 9 months, your return is 6.33%, and if a year, 4.71%.So, it seems to me that the street is saying the deal will close about 9 months out. The price will of course get really close to 40 as it seems the closing date is near.But taxes, transaction costs, the time value of money, and the nagging fear of a walk away explains the seeming disconnect in the price.
I seriously doubt, that. But if it happens, Arbs are truly screwed. http://blogs.barrons.com/techtraderdaily/2012/01/06/moto-mobility-sees-q4-revenue-hit-by-competition/?mod=yahoobarronsMMI has CONTINUING product issues, they had to issue a warning before they report! Bet Sanjay is glad he no longer needs to make an earnings call. Half a billion in sales miss hurts.Wonder how hard Page and Brim hosed him for that?
MMI is imploding....Brin and Sergei should walk away..... and with the AT&T debacle as a precursor, they won't look nearly as ridiculous as they otherwise would.